The Spanish economy has been contracting for two years now, according to GDP data released this morning. Compared to the first quarter of the year, second quarter GDP fell by 0.1 per cent, and by 1.7 per cent relative to the same period the year before (release).

However, the rate of decline is moderating, pointing to the possibility of an imminent recovery.

Spanish politics is currently in the grip of a corruption scandal, with prime minister Mariano Rajoy due to face a Congressional hearing on 1 August. This morning, minister of industry, energy and tourism Jose Soria said Rajoy had his full trust.